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ControlAn electronics firm is currently manufacturing an item that has a variable cost of per unit and a selling price of per unit. Fixed costs

ControlAn electronics firm is currently manufacturing an item that has a variable cost of per unit and a selling price of per unit. Fixed costs are . Current volume is units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of . Variable cost would increase to and the selling price would be revised to with the expectation that the volume would be units as a result of a higher-quality product.

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